How United Arab Emirates VAT works
The United Arab Emirates introduced VAT at a standard rate of 5% on most goods and services. Some supplies are zero-rated or exempt (e.g. certain financial and residential supplies).
Add VAT: Gross = Net × 1.05. Example: AED 1,000 → AED 50 VAT → AED 1,050. Remove VAT: Net = Gross ÷ 1.05.
VAT-registered businesses in the UAE must issue tax invoices meeting Federal Tax Authority requirements. Use this calculator to verify figures, then generate a professional AED invoice with InvoBuzz.
How to calculate VAT in Dubai and the UAE
- 1
Enter your net (excl. VAT) amount in AED
Example: AED 2,000 for consulting services in Dubai.
- 2
Apply the 5% UAE VAT rate
VAT = Net × 0.05. Gross = Net × 1.05. At AED 2,000 net → AED 100 VAT → AED 2,100 gross.
- 3
Remove VAT from an inclusive price
Net = Gross ÷ 1.05. Useful when a client quotes a VAT-inclusive budget.
- 4
Issue a UAE tax invoice
Use our free UAE invoice generator to create a VAT-compliant AED invoice with TRN fields.
Reverse charge & inclusive prices
Reverse charge can apply to certain imported services under UAE VAT rules. Confirm with your FTA guidance or tax advisor.
Invoice requirements
A UAE tax invoice generally requires: supplier and customer details, TRN where applicable, invoice number/date, description, VAT amount and rate, and totals.